AAA vs. Farmers Automobile: Which Company is the Best Fit for You?

Quick Facts

• Based on national averages for auto insurance, Farmers Automobile offers significantly more affordable prices than AAA
• AAA may help you save more money -- they offer more discounts than Farmers Automobile Insurance Association
• Farmers Automobile has less expensive premiums for policyholders who don't have any speeding tickets, DUIs, or at-fault collisions on their record

AAA or Farmers Automobile: Which Company has the Cheapest Car Insurance?

So, you're considering switching to a new insurance policy. After all, you've seen ads from all sorts of companies offering hefty savings. But exactly how much can you save by switching?

You might have narrowed it down to AAA or Farmers Automobile as your top options, but which carrier will offer you cheaper prices?

As you can see, Farmers Automobile is quite a bit cheaper than AAA, with premiums averaging $123 a month compared to $314 with AAA when looking at the national average rates for car insurance.

Even so, Farmers Automobile may not be the cheapest or best option for each driver out there. After all, auto insurance carriers can offer drastically different rates to every driver depending on rating factors like your credit score, where you call home, your driving record, or even your age (among other things), so rates will vary quite a bit from person to person.

Wanting to know if AAA or Farmers Automobile is really the right company for you? Keep on reading to see how average premiums can change based on all of the factors we've mentioned above.

AAA vs. Farmers Automobile: Average Car Insurance Rates by State

AAA and Farmers Automobile only compete against each other in two states, with Farmers Automobile offering more affordable prices to the average driver in all of them. Illinois has the most noticable difference, where Farmers Automobile rates are $143 less expensive than insurance premiums at AAA.

There's a lot more that goes into your car insurance cost than just the state you live in. Keep reading to learn more.

Which is the Best Company For Young Drivers?

Young drivers -- especially teens -- usually pay a lot for auto insurance compared to older drivers. Normally, that's because teen drivers are statistically much more likely to get into an accident that results in an insurance claim, making them much riskier to insure.

But still, even with seemingly sky-high prices, teen drivers can still find ways to save money. For example, 18-year-old drivers pay an average of over 60% less per month by choosing Farmers Automobile over AAA.

But both companies will offer you dramatically lower rates once you turn 25. Farmers Automobile offers the steepest drop, with 25-year-olds paying less than a third of what 18-year-old drivers are charged. AAA's average premiums reduce almost 60% during that same period.

Which is the Best Company for Retired Drivers?

Once you approach retirement age, you'll generally enjoy the most affordable insurance prices out there. You've been on the road for years, and all that experience pays off when it comes to your monthly rates for car insurance.

But who has the best prices for retired drivers between AAA and Farmers Automobile? Farmers Automobile gets the edge here, with average premiums coming in at around $96 monthly compared to AAA's $238.

Which is the Best Company for Married Drivers?

Married policyholders tend to get slightly cheaper auto insurance rates than single drivers. That's typically because married drivers tend to own and insure several vehicles, which can often earn you a discount.

For single policyholders, the difference in average prices between these two carriers is significant, with Farmers Automobile rates coming in at about a third of AAA's. The advantage is also clear for married couples - Farmers Automobile offers the lowest average premiums.

AAA or Farmers Automobile: Average Rates by Gender

Because women are less likely to get into accidents and get speeding tickets, they have a decreased chance of filing a claim with insurance. So, insurance companies will often charge women less than men.

Women usually pay more than 10% a month less than men with AAA, and around 1% less with Farmers Automobile.

When it comes to the most affordable rates for each gender, Farmers Automobile comes out as the cheapest option for both genders. On average, women save about $175 per month and men save about $208 with Farmers Automobile compared to the average AAA policyholder.

AAA vs. Farmers Automobile: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

Insurance can be a complicated subject for most people. Everyone needs car insurance, but there are so many different terms and limits that it can be hard to find the right policy for you.

The two most common policies that drivers look at fall into two categories -- liability coverage (that covers property damage and bodily injury for other drivers and passengers if you cause a collision) and full coverage (which includes two additional coverages -- collision and comprehensive -- in addition to what you get with liability).

Looking specifically at state minimum limits for liability insurance, Farmers Automobile has the significant edge, with average monthly prices coming in at $75. If you want a full coverage policy with the same state minimum limits, Farmers Automobile again has the edge, with policies averaging around $170 a month to AAA's $459.

Is AAA or Farmers Automobile Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from insurance carriers offering great premiums for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

Speeding tickets and accidents will most likely raise your prices, but is AAA or Farmers Automobile more affordable for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Policyholders who use AAA for their auto insurance can typically expect their monthly bill to go up about 29% after getting a speeding ticket. Farmers Automobile policyholders can expect a less drastic increase of around 20%.

That being said, Farmers Automobile tends to offer the best prices for both drivers who have a recent ticket and those with clean records -- their rates are around 59% less expensive for drivers with clean records and 64% cheaper for those with a ticket.

Which Company is Best for Drivers After an Accident?

After an accident, drivers who have their car insurance through AAA can expect to see about an $126 -- or around 37% -- rise in their insurance rates. Drivers who use Farmers Automobile for their car insurance will see a monthly bill about $30 (or 26%) more expensive after reporting an accident to their auto insurance carrier.

At the end of the day, drivers who use Farmers Automobile end up with the cheaper prices after an accident, with average premiums coming in at $117 compared to AAA Insurance's $339.

Which Company is Best for Drivers with a DUI?

If you get a DUI charge on your record, it's probably going to cost you more than a simple speeding ticket or even a collision. For example, AAA increases average prices by nearly $200 per month -- that's more than a 45% increase.

But if you end up with a DUI charge and are looking for more affordable rates, Farmers Automobile tends to be less expensive for the average driver, with monthly premiums coming in at around $178 to AAA's $403.

How does Credit Score Impact AAA and Farmers Automobile Rates?

Often times, your credit score can come into play when companies determine your monthly bill. Certain states and carriers do not allow for credit score to be used as a car insurance factor, but it might come into play for lots of drivers.

Car insurance companies argue that someone with bad credit is less likely to pay their bills on time, which makes them riskier to insure. Because of that, policyholders with bad credit will often be forced to pay more.

Looking specifically at AAA and Farmers Automobile, which company has the lowest premiums for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

If you have solid credit, Farmers Automobile will normally reward you the most. For policyholders with "excellent" credit scores, Farmers Automobile comes in over 56.76 more affordable. Drivers with "good" credit scores generally save about 60% with Farmers Automobile compared to average rates from AAA.

Which Company is Best for Drivers with Bad Credit?

Farmers Automobile typically offers lower prices than AAA when it comes to drivers with a below average credit score. Drivers with "fair" credit pay around 60% a month less with Farmers Automobile compared to AAA, and those with "poor" scores usually save an average of about 65% per month.

Is AAA or Farmers Automobile Better for Drivers who Work from Home or Have Short Commutes?

How much you drive can have a considerable impact on how much insurance carriers will charge for coverage. Normally, the more milage you put on your car each year, the more you can expect to pay for auto insurance.

Farmers Automobile tends to be the cheaper option for both remote workers and those taking short commutes. Farmers Automobile's average premiums for drivers with 6,000 annual miles come in around 64% less expensive than AAA. Those who drive 12,000 miles yearly can expect to pay about 58% less with Farmers Automobile over AAA.

AAA or Farmers Automobile: Compare Rates for Urban, Suburban, and Rural Drivers

Where your home is can play a sizable role in how much you pay for insurance. Generally, drivers who live in heavily-populated urban areas will pay quite a bit more than rural policyholders since there are a lot more vehicles on the roads where they live.

When comparing these two companies side-by-side, Farmers Automobile typically comes out as the cheapest option for drivers in all types of areas, no matter if they're urban, suburban, or rural.

For drivers in urban ZIP codes, Farmers Automobile Insurance Association's average prices are around 50% less than AAA Insurance. People who live in suburban areas pay about 69% less with Farmers Automobile compared to AAA. Those in rural areas can expect to save around 67% with Farmers Automobile compared to AAA.

AAA vs. Farmers Automobile Discounts

No matter why you might be in the market for a new car insurance policy, you're always going to want to save as much money as you can, and the best way to do that is by utilizing as many auto insurance discounts as possible.

But where do you even start? With so many discounts out there, it may seem challenging to find all the of the ones you can take advantage of.

Luckily, we did the hard work for you and broke down all of the different discounts offered by both AAA and Farmers Automobile so that you can easily see which company offers the most discounts and see which ones you might be able to take advantage of.

AAA blows Farmers Automobile away when it comes to the sheer amount of discounts available, offering 22 more discounts than Farmers Automobile.

There are a couple discounts both carriers offer, but AAA also offers discounts for AAA, academic, COVID-19 relief, and more.

On the other hand, Farmers Automobile has a proprietary discount of their own -- a seat belt discounts.

Final Thoughts: Is AAA or Farmers Automobile Best for You?

So, you've seen how different variables can affect your insurance premiums. We've shown you all the discounts each carrier offers, too. That's all well and good, but when it comes down to it, which insurance company is the best one for you and your specific needs?

Farmers Automobile might be best for you if....

• Your driving record includes a DUI charge.
• You want the most robust protection via a "full coverage" policy.
• You want to save money while purchasing car insurance for a teenager.

AAA might be best for you if...

• You want to save extra money with discounts.

Hopefully, this guide helps you get a good idea of the differences between AAA and Farmers Automobile. We also hope we've given you the information you need to make the best decision about your auto insurance.

At the end of the day, the best way to make sure you're getting the best deal on your car insurance policy is to compare quotes from a handful of companies, not just AAA and Farmers Automobile. Luckily, sites like Compare.com make it easy for you to do just that. Just enter your ZIP code below and get free quotes from dozens of the top insurance carriers in your area, all in just a few minutes.

AAA vs. Farmers Automobile FAQs

Is AAA or Farmers Automobile cheaper?

Farmers Automobile is the cheaper of the two companies when looking at national average rates, with policies averaging $123 per month with Farmers Automobile and $314 for AAA. However, that doesn't mean Farmers Automobile will be the lowest carrier for each policyholder, since there are lots of different factors that come into play when it comes to your auto insurance bill.

Who is better, AAA or Farmers Automobile?

Unfortunately, the only answer we can give you is "it depends.". No single company is "better" for everyone -- it all depends on the makeup of your unique car insurance profile.

Why do AAA and Farmers Automobile offer me different rates?

Insurance carriers use many different variables when determining the prices they charge. Factors such as your driving record, gender, age, where you call home, and sometimes even things like your credit score can all be taken into consideration. Both AAA and Farmers Automobile calculate premiums using different variables, so it's likely they'll offer different prices. The best way to determine which carrier is the cheapest for you is by comparing personalized quotes from a bunch of different companies.

How do I know if AAA or Farmers Automobile is right for me?

The only way to find the auto insurance company that's right for you is by getting quotes from multiple carriers and finding the one best suited for your individual budget. Luckily, sites like Compare.com do all the hard work for you. Just enter your area information and you'll get quotes from dozens of your local top car insurance companies for free. With those, you can guarantee you're getting the most affordable premium. And maybe you'll find that the best carrier for you isn't AAA or Farmers Automobile at all, but another you hadn't even thought of!

Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.